11:20 GMT +318 October 2019
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    The seal of the International Monetary Fund is seen on a headquarters building in Washington

    IMF Approves Reform to Provide Loans to Defaulting Debtors

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    IMF Executive Director for Russia Aleksei Mozhin said that International Monetary Fund's board of directors have voted to reform lending policies in order to allow countries to borrow money even if they default on their obligations to bilateral creditors.

    WASHINGTON (Sputnik) The International Monetary Fund's (IMF) board of directors have voted to reform lending policies in order to allow countries to borrow money even if they default on their obligations to bilateral creditors, IMF Executive Director for Russia Aleksei Mozhin told RIA Novosti on Tuesday.

    “The [IMF] board’s decision allows under certain circumstances to finance the Fund’s programs despite default on obligations to creditors,” Mozhin said. “I voted against it. I cannot comment on other votes due to the policy of confidentiality.”

    Mozhin added that the decision comes into effect immediately and will be applied to previous agreements.

    In October, the IMF said it seeks to reform its lending policies in order to allow countries to borrow money even if they default on their obligations to bilateral creditors.

    IMF Communications Department Director Gerry Rice has previously stated that the reform is a part of a broader program related to reforming IMF’s lending framework that governs sovereign debt restructuring.

    The reform allows the IMF to proceed with Ukraine's bailout program even after a potential default by Kiev on its $3 billion debt to Russia.

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    International Monetary Fund, default, loan, debt
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